Govt may raise $10 billion from overseas bond sale
The sale, being considered for October, would be in either the yen, euro or the dollar
July 25, 2019 / 11:14 AM IST
The Centre is looking at a foreign currency bond sale in October to raise a one-time amount of $10 billion (about Rs 68,000 crore), Bloomberg reported.
Currencies being considered for the same include the yen and euro for their lower yields or the dollar due to liquidity, the report added.
While the present discussion is for a one-time fundraiser, it may be divided into multiple tranches, the report said, adding that there would be no hedging so as to keep costs to a minimum.
Moneycontrol could not independently verify the report.
This comes after Finance Minister Nirmala Sitharaman in her Budget speech on July 5 said the government would look at taking advantage of India’s low foreign debt to issue sovereign bonds (in domestic and foreign currencies).
The bond market gained on speculation of this $10 billion sale plan. The benchmark 10-year yield has so far fallen three basis points (100 bps=1 percentage point) to 6.43 percent, it added.